As a rideshare driver, you’re entitled to a tax deduction for the cost of operating your vehicle. There are two ways to deduct your vehicle expenses.
The first way is to record every single vehicle expense, but this can be a real pain.
The second way is much simpler. Just keep track of all of your miles driven for rideshare services and multiply that by the IRS’s standard mileage deduction rate.
The standard mileage rate for 2022 is 65.5¢ per mile. That means that if you drive 10,000 miles this year, your standard mileage deduction will be $6,550. That’s $6,550 of your yearly earnings that will now be tax-free.
65.5¢
2022 standard mileage deduction rate
The easiest way to keep track of your rideshare miles is with the Gridwise mileage tracker. Just start tracking your miles when you go online with your drivers apps and stop tracking when you get home at the end of the day.
Action Items
01
Use the Gridwise mileage tracker to track your next shift. Don’t forget to enter your earnings at the end.
02
Open Gridwise and take a look at the Earnings tab. Here you’ll be able to see your earnings and mileage totals, as well as an estimate of your standard mileage deduction.